[Hong Ju-yeon, Edaily Reporter] South Korea’s pharmaceutical and biotechnology sector advanced broadly on Aug. 17 as stocks related to hair-loss treatments surged following news that the government is reviewing the expansion of National Health Insurance coverage for alopecia treatments. As the government signaled its intention to frame hair loss as a medical condition requiring treatment rather than a cosmetic issue, JW Shinyak hit the daily upper limit, while Olix and L&C Bio also posted strong gains. D&D Pharmatech rallied sharply during intraday trading on news of a joint drug development partnership with LG AI Research.



◇JW Shinyak Emerges as Key Beneficiary of Hair-Loss Insurance Theme

According to KG Zeroin’s MP DOCTOR, shares of JW Shinyak closed at 2,335 won, up 537 won, or 29.87%, from the previous session.

The surge followed remarks from the government regarding the possible expansion of National Health Insurance coverage for hair-loss treatments. Earlier, President Lee Jae-myung described hair loss as a “survival issue” for young people and instructed officials to review insurance coverage. Minister of Health and Welfare Jung Eun-kyeong stated during a press briefing on Aug. 11 that the government plans to pursue broader reimbursement following a public consultation process in the second half of the year.

JW Shinyak offers a broad portfolio of hair-loss products, including the oral finasteride treatment Monade Tablet, the dutasteride-based Dutamoa Tablet, and the topical treatment Rogaine Foam. Investors expect that if currently non-reimbursed treatments become eligible for insurance coverage, patient costs would decline while prescription volumes increase.

The company’s key pipeline candidate, JW0061, a topical treatment based on a GFRA1 agonist mechanism, received approval to begin a Phase 1 clinical trial in February this year.

However, whether hair-loss treatments will ultimately be covered by national insurance remains uncertain, as political debate continues. On Aug. 16, Kim Mi-ae, senior policy vice floor leader of the People Power Party, criticized the proposal, saying, “There are patients and families struggling every day with cancer, rare diseases, and severe illnesses. Should M-shaped hair loss really come before them?”

Lee Jun-seok, leader of the Reform Party, also questioned the policy, arguing that “National Health Insurance is not a giveaway politicians can hand out for political favor,” and raised concerns that limiting support primarily to younger people could amount to vote-seeking.



◇OliX Pharmaceuticals, Gains on Hair-Loss Exposure and Anticipation Ahead of BIO USA

OliX Pharmaceuticals closed at 142,000 won, up 12,700 won, or 9.82%, from the previous trading day.

The stock benefited from ongoing clinical development of OLX104C, the company’s RNA interference (RNAi)-based hair-loss treatment candidate, as well as improving investor sentiment ahead of the BIO International Convention 2026 (BIO USA), which will be held in San Diego beginning Aug. 22.

OLX104C is an RNA-based therapeutic candidate administered through intradermal scalp injections and targets the androgen receptor. The company recently completed dosing of the first patient in a Phase 1b/2a clinical trial involving patients with androgenetic alopecia in Australia.

At BIO USA, OliX Pharmaceuticals plans to actively pursue license-out and business development discussions with global pharmaceutical companies centered on its key pipeline assets, including obesity treatment candidate OLX501A, macular degeneration treatment candidate OLX301A, and its proprietary RNAi platform, OASIS.

“This year’s BIO USA will be an important opportunity for OliX Pharmaceuticals to directly present its key data and platform capabilities to global pharmaceutical and biotechnology companies and to advance meaningful collaboration opportunities,” said Lee Dong-ki, Chief Executive Officer of OliX Pharmaceuticals.



◇L&C Bio Expands ECM Skin Booster Application Into Hair-Loss Treatment

L&C Bio closed at 86,300 won, up 8,100 won, or 10.36%, from the previous session.

The stock rose after the company announced plans to expand the application of its extracellular matrix (ECM)-based skin booster Re2O into the hair-loss treatment market.

Unlike conventional oral treatments that focus on regulating androgen signaling or prolonging the hair growth cycle, Re2O is viewed as a differentiated regenerative medicine approach that directly improves the ECM environment of scalp tissue surrounding hair follicles.

At the “Hair Loss Practical Academy” event hosted by the Korean Society of Dermatologic Obesity and Aesthetic Medicine on Aug. 13, L&C Bio conducted a workshop demonstrating Re2O scalp treatments using its i-Jet injection platform.

“The ultimate goal of hair-loss treatment is not simply to thicken hair but to restore an environment in which hair follicles can remain healthy,” said Kim Ji-hyun, director of Yonsei Midain Clinic and a speaker at the event. “ECM regeneration could become a new therapeutic approach by normalizing tissue around hair follicles.”

An L&C Bio official added, “Interest in regenerative medicine-based approaches is expanding in the hair-loss treatment market. Leveraging the ECM technology expertise accumulated in skin regeneration, Re2O presents new possibilities in scalp care and hair-loss treatment.”



◇D&D Pharmatech Partners With LG on Peptide Drug Development

D&D Pharmatech closed at 108,100 won, up 16,500 won, or 18.01%, from the previous session. During intraday trading, the stock climbed as much as 27.29% to 116,600 won.

The gains followed news that the company signed a definitive agreement with LG AI Research to jointly develop next-generation oral peptide therapeutics.

Under the agreement signed on Aug. 16, LG AI Research will use its proprietary generative AI model EXAONE to analyze disease-causing protein structures and design optimized peptide sequences and drug candidates.

D&D Pharmatech will be responsible for structural design, synthesis, and evaluation of AI-generated candidates, while also carrying out preclinical and clinical development and pursuing global regulatory approvals.

“This collaboration goes beyond simply introducing a technology. It represents a process of building biotechnology-specialized AI capable of solving the complex challenge of drug discovery,” said Lim Woo-hyung, co-head researcher at LG AI Research.

Lee Seul-ki, Chief Executive Officer of D&D Pharmatech, said, “By combining LG AI Research’s world-class AI capabilities and data-driven learning expertise with D&D Pharmatech’s experience in peptide drug development, we aim to dramatically improve the efficiency of AI-powered drug discovery. We will continue to demonstrate our technological leadership in oral peptide therapeutics, including macrocyclic peptides, in the global market.”